The world’s largest integrated metals and mining company, ArcelorMittal, has announced launch of new clean technology venture capital fund and a carbon fund. The steelmaker also announced its first investment of $20 million in California-based Miasole, which is engaged in the development of thin-film solar panels. ArcelorMittal will be working with Bessemer Venture Partners, Khosla Ventures, and Kleiner Perkins Caufield & Byers to help finance clean technology innovation through the fund, said the company in a press release.

Khosla Ventures was formed in 2006 by Vinod Khosla, founder of Sun Microsystems, with a focus on cleantech and alternative energy. So far Khosla had been investing out of his own personal wealth and was recently reported to be talking California Public Employees’ Retirement System for $640 million investment in his fund.

The Carbon Fund, which has an initial investment commitment of $157 million will invest areas such as renewable energy, energy efficiency, methane capture and greenhouse gas reducing technologies. The carbon credits generated by these investments will help ArcelorMittal meet its compliance needs as under EU Emissions Trading Scheme.

Miasolé is also backed by Bessemer Venture Partners, Kleiner Perkins Caufield & Byers and Vantage Point Venture Partners. It is manufacturing new solar products that utilize less semiconductor material than today’s legacy silicon modules and boasts the highest lab efficiencies of any thin film solar material. The cleantech fund is managed by a team from ArcelorMittal Flat Carbon Americas (FCA) and its investment decisions are taken by a six person Investment Committee chaired by Lou Schorsch, CEO of ArcelorMittal FCA.